Pre Market Report, June 9, 2017 | Stocks and Commodities

June 9, 2017
Time: 8.45 am

Pre Market Report:

1. US markets erased the earlier losses to close in Green in the last one hour.
2. UK is headed for Hung Parliament.
3. Yest Asian markets are mostly positive.
4. SGX Nifty is trading about 10 points higher, around 9680.
5. Our markets consolidated for two full weeks.
6. This is a long consolidation.
7. The longer the consolidation, the move will be severe once it breaksout or breaksdown.
8. Since Bank Nifty is firm, there is every possibility of breakout today.
9. I expect the breakout today afternoon.
10. Financial markets in Europe want weak Govt. in UK so that there will be no hard negotiation in Brexit.
11. If Brexit happens on hard negotiation, then more more Europe countries will threaten to leave Euro.
12. Just few weeks befor France was in that positions, luckily Le Pen did not win France elections.
13. So Hung Parliament in UK is actually good financial markets.
14. Despite triplr events (UK Election, ECB meet, FBI Director Testimony) world markets were resilient yesterday.
15. Yesterday was a stable expiry for Bank Nifty weekly options.
16. We love stable expiry, I made about Rs 5 lakhs profit in intraday trades yesterday in Bank Nifty.
17. DIIs were aggressive buyers in Cash market yesterday while FIIs were mostly neutral.
18. If FIIs turn net buyers in Cash market aggressively, then breakout may happen.
19. IT index is dragging the markets as Infosys and TCS are index heavy weights.
20. Reliance is trading almost 10% lower from its peak.
21. So IT stocks and Reliance will have to out perform for the markets to breakout.
22. Let us see whether that happens today.
23. Nifty future is expected to trade between 9640 and 9720.
24. Expect a sharp move in the afternoon on either side.
25. The danger of long consolidation is that if no breakout comes, then people will start selling and severe correction may come in a short span of time.